I am often asked how I think the market is doing now and what will it do later?  My crystal ball broke but I do have some thoughts based on what I and the other agents associated with our company are experiencing.

• Single buyers will become active as softer prices create opportunities.  This includes those never married and those divorced or widowed.
• Prices in San Diego will remain neutral.  Buyer confidence seems to be improving but is not yet at the point of pushing prices upward.
• Agreements will be harder to reach, requiring more patience on the part of clients and agents alike.  This will probably mean more counter-offers and tougher stances from some sellers relating to repairs if prices are not what they expected.
• Overpriced properties will sit until buyers feel the value matches the property.  The old adage of location, location, location has been replaced by location, condition and quality of amenities.  In other words, the best quality for the money will sell first.  It is becoming more common for listing agents to pre-negotiate automatic price reductions on a scheduled basis.  This allows agents to take listings they feel are overpriced in the beginning if they know the price and value will eventually match without major hassles over pricing.  Absent this agreement it is not unusual for the 2nd or 3rd listing agent to actually make the sale once the seller has become "educated" by the market's negative response to their offering.  The problem for the seller is this can take many months if they start out with a hard-line price objective that does not match the market's attitude or comfort level.
• Upscale features sell.  The latest and greatest "creature comforts" are important, especially when they are priced fairly.  Nice kitchens, well designed entertainment nooks, computer wiring to name only a few.
• Home staging will continue to be an important tool.  It is amazing how much better a home shows when it has been de-cluttered, cleaned, painted and the furniture has been thinned out to make it easier for people to see the house through the clutter.  Buyers get the mental impression that the seller doesn't care about their home if it has not been properly prepared and this feeling often causes enough concern to disqualify a property.
• The development of tools on the internet makes it imperative for each home to have attractive media attached to the listing so potential buyers can inspect the home from anywhere in the world.  This also eliminates much of the "wrong" traffic for a home because the buyers have already seen what is being offered.
• Buyers will be careful when choosing their agent until they find one that is comfortable, competent and careful about communications.  I think we'll probably see fewer agents chosen because they are in the buyer's family, especially when the market is so complicated and technologically advanced.

Just my thoughts based on my experience...